Abroad the media groups are not better off

With the economic recession, advertisers are scarce and the advertising market has entered a long tunnel which media groups do not see the end. Channels of television, radio or press groups, agencies... no one is spared, in France and abroad. And some groups were recorded in the first quarter of the sometimes dizzying falls on their sales with the key of the often violent stock market reactions.

15.29... The sanction of the stock market to Havas quarterly figures published Friday has been without appeal: the Group controlled by Vincent Bolloré, it is true, posted the worst performance a decline of 8.4 activity of advertising agencies. But Havas is not long remained the Red Lantern. Yesterday, the British Aegis, Bolloré is also a shareholder, did worse than its French counterpart. On the first three months of the year, revenues fell by 11.6, at constant scope and Exchange. In the purchase of advertising space the downturn has been stronger, to 13.1. At the time, the figures for Publicis ( 4.4 for the organic evolution of activity) and other global giants of advertising (the British WPP or Omnicom and Interpublic Americans) appear in retrospect almost good...

Forces report reversed

More media groups depend on advertising, the recession strikes hard. The shock is even more severe that the relation of force advertisers reversed, causing tensions to decline in the price.

In television, M6 a better resisted in the first quarter that TF1 leader, with a decline in advertising revenues by 11, against a drop of 27 for the one, whose rates are, with the crisis, have become too expensive. "The premium of 10-15 enjoyed on the price of its commercials from M6 TF1 has been swept", analyse the Citi financial, who see no improvement in the short term for the first string. His scholarship course recorded the highest decline of the SBF 120 index... NRJ also, times are hard. The Group recorded a drop of 19 of its turnover in radio in the first quarter, a tripling of its advertising revenues in television it has chain NRJ12 has not compensated. On the one hand, nearly 10 million euros of revenue lost in radio and on the other, barely half won in television. Exposed to 15 of its turnover in advertising, Lagardère expects him as a black year in 2009. In the first quarter, the Group has limited case-sensitive thanks to its books. Revenues from Lagardère Active, the entity which are housed the press and audiovisual, however plunged 18.3.

Same punishment for JCDecaux, which surprised the weakness of the figures. Referring to the "unprecedented economic conditions" unambiguous, the company headed by brothers Decaux is affected in two main activities: street furniture ( 16.8) and display ( 18.7). Meanwhile, Vivendi currently resists the crisis, with more related to subscriptions to advertising revenues. But other indicators reeling: the United States, sales of video games group holds the first independent publisher with Activision Blizzard collapse, and in France, the channel Canal lost subscribers.

Cost reduction

In this dark context, the time is in savings plans. TF1 has amplified its goal of reducing costs to EUR 70 million. What in the eyes of Morgan Stanley remains inadequate on the 335 million euros of loss of expected income. The Bank said that Revel, ITV, in serious difficulties, provides for 285 million pounds (323 million euros) of reducing costs by 2011. On his side, Lagardère has developed the scheme dry business press and broadcasting in the world, imposing a new plan for savings of 70 million euros, in addition to the two years ago. JCDecaux and NRJ also shake the bolts. But this does not prevent their profitability to weaken in 2009.

Abroad, the media groups are not better off. This German Bertelsmann in the television and the press has plunged into the red in the first quarter and the Belgian Publisher Roularta, owner in France of "The Express", announced yesterday that its operating income (prevented) would lower "substantially" in 2009. Us giants such as Disney, Viacom and News Corp. have also published quarterly results in strong decline (see below). According to Rupert Murdoch, the principal shareholder of News Corp., the worst would be however passed. The next few months will tell if he is right.